As we approach the so-called dog days of summer and the holiday period, it's a good time to take stock of where the economy is right now and how manufacturers in the West Midlands are feeling.

The first estimate of the second quarter GDP due out on Thursday is expected to be strong with all four major sectors of the economy expected to be positive for the first time since 2010.

On the other hand, the latest monthly manufacturing data were less positive, bringing to an end a run of upbeat figures.

These mixed indicators are typical of where we are in the cycle with commentators seizing on every indicator to look for the longed for evidence of moves towards much stronger growth. The truth, as with all indicators, probably lies somewhere in-between.

When I speak to manufacturers in the West Midlands there are still mixed views. Those connected with sectors such as Aerospace and Automotive are generally very busy, as are those who are exporting to faster growing emerging economies.

But, on the other hand, I can still find an equal number of companies who are still experiencing very tough conditions, especially if they have a fair degree of exposure to European markets which remain to a large extent flat on their back with the possible exception of Germany.

But, overall, there is a sense that we are perhaps through the worst and to borrow the words of the Chancellor, the economy is gradually healing. Under no circumstances however can we be complacent.

There are still deep rooted problems that need addressing such as the issue of greater competition in our banking sector, especially for smaller companies, where the relationship with the Banks is still raw.

We also continue to have a skills mismatch with a level of youth unemployment which is far too high, yet I hear many companies our Region tell me that they are crying out for skilled staff but cannot find.

So as we head for the holiday period and business and our politicians take a break there is much to ponder on return. Growth has to be the number one priority, financing those companies that are seeking to grow and ensuring they have access to the right skills they need and support for those exporting.

The second half of the year has the hallmarks of being far more positive than we have seen recently but it would not take much to knock it off track.